Corinthian to close campuses in 11 states

WASHINGTON — The dozen campuses that for-profit education company Corinthian Colleges Inc. is closing operate under the Everest name and are scattered in 11 different states, including Minnesota, the company announced Tuesday.

The Santa Ana, California-based company reached an agreement with the Education Department late last week that has it shutting down those campuses and putting 85 U.S.-based campuses up for sale. About a dozen others in Canada will also be sold.

About 3,400 of the 72,000 students who attend schools owned by Corinthian — owner of Everest College, Heald College and WyoTech schools — will be affected by the closures, the company said.

Last month, the department put Corinthian on heightened financial monitoring with a 21-day waiting period for federal funds. That was after it failed to provide adequate paperwork and comply with the department’s requests to address concerns about the company’s practices. The department said the concerns included allegations of falsifying job placement data used in marketing claims to prospective students, and allegations of altered grades and attendance.

Under the terms of the agreement, the campuses must tell students their options and each campus will have a plan that allows students to finish their program, if they choose to do so. Some are eligible for a refund.